Electric Vehicles

One of the selling points for EVs is they weren't subject to vehicle tax. So I was surprised today to receive a letter from the DVLA informing me that from 1st April 2025 my EV will be subject to 'vehicle tax'. Looking at the date of the tax introduction I thought it may be a joke, but I suspect it isn't.

 

It was announced in the 2023 autumn statement.

 

It was obvious they were going to be taxed at some point. They have to replace the loss of revenue from people moving from petrol and diesel cars to electric.

 

Not quite. For a new car, the first year can be up to £2745 for the first year depending on CO2 emissions, whereas an electric (under 50g CO2/km) would be £10. Afterwards the standard rate is £190.

So the road tax for a monster truck could be £3315 over 4 years, but an EV would be £580.

https://www.rac.co.uk/drive/advice/buying-and-selling-guides/car-tax-bands-explained

 

Yeah. But many non-EVs (like the monster truck) also cost £40k+. I currently drive a leased Tucson and the PHEV models start at £39k, and the basic petrol models start at £31k. It doesn't take much in the way of features to push them over £40k.

 

I don't have a problem in theory with the fact that I will have to start paying VED on my EV. It was inevitable that EVs would be taxed at some point and the lack of tax on it was not a factor in me going with an EV.

What I do have a problem with is the fact that years of tinkering with the VED system means that it is now full of anomalies. Such as the fact that a ten year old diesel chucking out fumes pays £20 while a new EV pays £190, all at a time when we are supposed to be encouraging people to transition to EV.

The whole VED system needs to be swept away and start again. I would base it on weight, regardless of age, to encourage people to stop going along with the ever increasing size of cars.

 

I got the same letter. "You don't have to take any action now" it said. So why the hell write to me now then? What a waste of money - govt largesse in action. Just send me the normal reminder when it's due and put the price on it.

 

The current Mrs. DR has a Renault Zoe. She get notification from DVLA for vehicle excise duty every year. The rate is currently £0. She renewed last month.

 

It's bizarre isn't it? And I say that as a £20 a year diesel owner. Really don't see the logic.

 

As far as I know, its still the case that you can renew your VED at any time even if its not due. So what anyone with an EV should do is renew in March next year, so they get another full year at £0 and don't need to start paying until April 26.

I know a few people on the EV forum I am a member of did exactly that in March of this year so they were aligned with the March end date already, in case the govt filled the loophole before having to pay for EVs came in and stopped you renewing when it's not due.

 

I really don't get why it's treated as sacrosanct that the system in play at the time a car was first registered is what applies for its whole life. There are a variety of values a diesel pays depending on its age and the cheapest price relates to the oldest ones, which dates back to when previous govts thought diesel was good. Just have one rate that applies to a type of fuel and emissions range, regardless of its age

 

It makes perfect sense. Is it more environmentally damaging to have a new car manufactured for you every 3 years or only change your vehicle every 20 years? It's not even close, even if the tech gets gradually a bit cleaner. For a battery EV, 46% of its total lifetime carbon footprint is generated before its even left the factory.

 

Imagine if all them people trying to flee Florida had electric cars.

 

It's a tricky one, as EVs cause as much (if not more) wear and tear to public roads as traditional cars. But objectively they don't cause anywhere near as much air pollution around cities. I arguably pay a lot more tax on my fuel than EV owners. But certain owners of diesels also pay the £190 road tax, which seems a bit inequitable when I only pay £20.

 

That's what I did. Renewed my EV tax early at £0, so doesn't kick in for ages yet. In fact, I will have changed cars before its due.
I will have to pay car tax on my next EV which is fair enough. Dont have an issue to be honest, as others say, the govt has to raise the missing income from somewhere

 

Why, is 250 miles not enough to get them away from danger?

 

Originally "Road Tax" was intended to maintain the roads, but for many years the main principle of Vehicle Excise Duty has been "polluter pays". Clearly EVs are cleaner, therefore, have attracted lower VED. As others have pointed out, the roll-out of EVs has meant a reduction in tax from motorists. Along with this and in keeping with the original "Road Tax" idea, EVs are substantially heavier than conventional vehicles and so cause more damage to the roads. I can see both sides to this one, the need to increase tax revenue on one side and the incentive for people to switch to EVs on the other.

I'm conflicted.

 

It is fair to say that if you compare 2 similar sized cars, one petrol and one EV, the EV is likely to be a bit heavier, but it's probably not fair to say 'substantially' and its not correct to paint a broad brush picture and say that EVs are substantially heavier in general, as that implies all EVs are heavier than any ICE car, which isn't the case. There is an on going tendency for cars to get bigger and fatter as people's obsession with SUVs continues, which is why I would be in favour of VED being based on weight, regardless of age and propulsion. Then the biggest fattest cars will pay more, regardless of what powers them. Its getting to the point where a lot of modern cars are too wide for standard UK parking spaces.

Lots of EVs are of the bigger and fatter variety as there has been too much focus on the luxury end of the market, so of course yes, they are heavier. But 'normal' sized EVs are often no heavier than popular examples of ICE cars.

A few weight examples (maximum kerb weight)

EV
Renault Megane E-Tech - 1707kg
Kia Niro - 1757kg
Hyundai Kona - 1743kg
VW ID.3 - 2000kg

ICE
Kia Sportage - 1905kg
Nissan Qashqai - 1665kg
Land Rover Discovery - 2264kg
Volvo XC90 - 2297kg